Weekly Tax Highlights

Highlights to 22 February 2019

ATO Documents

Class rulings

CR 2019/14 Income tax: Monash Absolute Investment Company Limited – off-market share buy-back
CR 2019/15 Income tax: Ardent Leisure Group – restructure
CR 2019/16 Fringe benefits tax: employer clients of EML Payment Solution Limited who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 that make use of the Maxxia Wallet or Remserv Wallet
CR 2019/17 Income tax: assessability of payments under the QLD Taxi and Limousine Industry Assistance Scheme

Other news

ATO releases synthesised texts of treaties as modified by the MLI

On 22 February the ATO released the synthesised text of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLI) and the conventions between Australia and New Zealand, the United Kingdom, Japan and Poland in order to facilitate the understanding of the application of the MLI to each treaty.

Tax Cases

KKQY and FCT [2019] AATA 204
The AAT held that a loan agreement entered into between the taxpayer and a company provided for an amalgamated loan such that the repayment shortfall with respect to the loan was a deemed dividend pursuant to Division 7A of the Income Tax Assessment Act 1936. Further the AAT held that legal fees relating to proceedings commenced by the taxpayer as a beneficiary of a trust against the trustee of the trust and the company were capital in nature and not deductible under section 8-1 of the Income Tax Assessment Act 1997.

 

Progress of legislation

As at 22.02.19

Bill

Treasury Laws Amendment (Mutual Reforms) Bill 2019

Description  

Introduced by the Government into the Senate to reform the mutual sector including amendments to the Corporations Act and related tax amendments.

Status

Introduced into Senate 13.02.19.

Bill

Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019

Description

Implements measures to prohibit creditor-defeating dispositions of company property, improve accountability of resigning directors, allow the Commissioner to collect estimates of anticipated GST liabilities and make company directors personally liable for GST and authorise the Commissioner to retain tax refunds in certain circumstances.

Status

Introduced into House of Reps 13.02.19.

Bill

Treasury Laws Amendment (Increasing the Instant Asset Write-Off for Small Business Entities) Bill 2019

Description

Increases the threshold below which amounts can be immediately deducted by small businesses and extends the time period during which small business entities can access expanded accelerated depreciation rules.

Status

Introduced into House of Reps 13.02.19.

Bill

Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018

Description

Implements integrity measures in relation to stapled structures, thin capitalisation, withholding tax exemption for superannuation funds for foreign residents and the sovereign immunity tax exemption. The Bill was amended in the House of Reps in relation to premises used primarily for the provision of disability accommodation and student accommodation.

Status

Introduced into Senate 14.02.19.

Bill

Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018

Description

Broadens the SGE definition, amends the thin capitalisation asset valuation rules, better targets the R&D Tax Incentive, changes the GST Act in relation to online hotel bookings and removes the luxury car tax for re-imported cars refurbished overseas.

Status

Introduced into House of Reps 20.09.19. Report released.

Bill

Treasury Laws Amendment (2018 Measures No 5) Bill 2018

Description

Technical amendments to the AMIT regime; extending deductible gift recipient status to entities promoting Indigenous languages.

Status

Passed both Houses and awaits Royal Assent 18.02.19.

Bill

Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018

Description

Increased penalties and a one off amnesty for employers not meeting their superannuation obligations.

Status

Introduced into Senate 25.06.19.

Bill

Treasury Laws Amendment (2018 Measures No. 4) Bill 2018

Description

Implements the Government’s Superannuation Guarantee (SG) integrity package, extends Single Touch Payroll, and changes Super Fund reporting requirements.

Status

Passed both House and awaits Royal Assent 12.02.19.

Bill

Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 2) Bill 2018

Description

Implements new rules for foreign residents owning Australian housing, technical amendments to streamline the foreign investment framework and introduces tax incentives to boost investment in affordable housing.

Status

Introduced into Senate 19.03.18.

Bill

Treasury Laws Amendment (2018 Measures No. 2) Bill 2018

Description

Establishes the foundation for the Government's new Fintech framework. Makes a number of technical amendments to the Early Stage Venture Capital Limited Partnership, Venture Capital Limited Partnership and Tax Incentives for Early Stage Investor regimes.

Status

Introduced into Senate 26.06.18.

Bill

Medicare Levy Amendment (National Disability Insurance Scheme Funding) Bill 2017

Description

Fund the NDIS by amending the Medicare Levy Act 1986 to increase the Medicare levy rate from 2 to 2.5% of taxable income for the 2019-20 income year and later income years. Given the Government’s announcement that the increase to the Medicare Levy will be scrapped, this Bill may not proceed

Status

Introduced into Senate 13.11.17.

Bill

Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017

Description

Similar business test; Effective life assessment on intellectual property. The Government has announced that it will not be proceeding with the amendment to provide taxpayers with the choice to self-assess the effective life of certain intangible depreciating assets from 1 July 2016.

Status

Passed both Houses and awaits Royal Assent 12.02.19.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package.

Status

Introduced into Senate 23.11.16.

 

Share